Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 1 August 2014

Mentha-Oil Menthaoil settled down -0.76% at 705.5 due to lower demand from consuming industries in the spot market. Further, higher supplies from Chandausi in Uttar Pradesh too added pressure on mentha oil prices. Demand is likely to pick up in the coming days that could support the prices which have fallen a lot over last few months. In Rampur estimated market supply was at 20 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. In Bareilly total arrivals are at 20 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. In Barabanki sources reported arrivals at 350 Drums(1-drum-180kg), up by 50 Drums(1-drum-180kg) as compared to previous day. In Sambhal estimated market supply was at 50 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. These were well above the average monthly consumption of around 15-16 thousand months of the next six months. Traders mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. As per market sources, most of the cultivators and traders have reported strong liquidation in the major mandies to meet their cash requirement during the festivals season. The total stock position of mentha oil is currently reported at around 45-50 thousand tonnes against the average annual domestic demand of 32-33 thousand tonnes. Technically market is under fresh selling as market has witnessed gain in open interest by 8.62% to settled at 9503 while prices down -5.4 rupee, now Menthaoil is getting support at 701.4 and below same could see a test of 697.2 level, And resistance is now likely to be seen at 711.9, a move above could see prices testing 718.2.